Avoid debts
It sounds trivial and above all cliché to say this "Avoid debts". But in our current society in which consumerism boasts a lot, it is possible that we fall into the trap of accumulating debts by making decisions based on fleeting emotions that we later regret after making them.
One of the worst things that contracting debts triggers is taking them based on emotions and not using logical and critical thinking, it is that feeling of lack of independence when you feel tied to a monetary commitment that in most cases you cannot conclude by yourself. lack of resources.
In my experience, I have contracted debts blindly believing in people who, without giving me any type of guarantee, told me that they would pay me the money lent. Not everything is gray, several of these people were capable or had the responsibility of fulfilling the commitment acquired. But a large number of other individuals, whether for reasons beyond their control or not, reneged on their commitment to me.
I know in advance that many of you who read this post have or had the following feelings.
- Anger
- Repentance
- feeling betrayed
- feeling used
- Etc.
That is why through my experience in these somewhat uncomfortable situations I have come to the following conclusions that have helped me avoid them.
Before lending any amount of money, always try to keep your emotions under control. Making decisions based on fleeting emotions can bring you unwanted results in the long term.
Try to have a plan B in case the other party may or may not pay you what is owed. A very effective way to achieve this is to retain something of value that serves as compensation in the event that you do not receive the payment of the debt.
Make the rules clear when lending money to people very close to you such as family and friends. One thing is your relationship with them and another thing is your financial health. If an agreement cannot be reached or if the other person dislikes that you are going to provide that borrowed money, it is better not to lend it. In this way you will preserve both your money and that valuable relationship.